Morning! This is MF Lending - I hope you had a wonderful Thanksgiving 🦃!

I know all of you are still digging through the mountain of Cyber Monday emails, so I decided to release the first edition this week on Tuesday instead. Welcome back…you look like the smartest agent in the room already.

Here’s what we’ve got for you today:

1. Concessions, Concessions, Concessions 💸

2. Case-Shiller & FHFA Home Prices 🏡

3. New Home Sales Weaker Than Expected ❄️

By the way, this article on Best Tools Top Realtors Use is the most clicked link in this newsletter, you should check it out if you are interested.

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Rates Today 📉

Concessions, Concessions, Concessions 💸

If you follow me on Instagram (@mf.lending) you have heard me harp on the amount of concessions (or “seller credits”) I am seeing in the market today.

You also know that I am not the person to say every time is the right time to buy. But…if you have clients on the fence - now is go time.

In the last two days, I have received the following deals structured by some badass referral partners 🤘🏻:

#1

• Purchase Price: $526,500

• Seller-Paid Closing Costs: $31,500 🤯

The client is using the $31,500 dollars to do a 3-2-1 buydown AND have the seller pay for two permanent discount points. This client is getting a 6.875% rate fixed for 30 years PLUS a 3-2-1 buydown. In year 1, the client is paying a 3.875% rate.

[They also considered doing a 15-year loan instead of 30yr; that rate is 5.99%…meaning yr 1 on the 15-year loan would be 2.99%.]

#2

• Purchase Price: $789,000

• Seller-Paid Closing Costs: $22,000

This client is using the seller-paid costs to do a 2-1 buydown AND pay for all of her closing costs. In year 1, the client is paying a 5.375% rate.

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In just two transactions, clients are getting over 53k in concessions from sellers. 

I cannot emphasize enough how motivated some of the sellers are in this market. If the house is still on the market, they are ready to make a deal happen.

For clients who are buyers, they have all the leverage. They can not only lock in a below-market rate but also get temporary buydowns to extend the runway on a refinance (something I covered in previous editions).

If you have a scenario like this or want to determine the best way to structure a deal to get the most benefits for your buyers - DM me on Instagram (@mf.lending) or email me [email protected] and I would love to brainstorm with you.

Case-Shiller & FHFA Home Prices 🏡

The monthly home price data was released this morning (11/28) and here are the results.

• CaseShiller -

  • M/M: +.2% (down from .3% last month)

  • Y/Y: +3.9% (up from 2.2% last month)

• FHFA:

  • M/M: +6% (down from .7% last month)

  • Y/Y: +6.1% (up from 5.8% last month)

This is clear - the housing market remains solid. We are still not seeing tumbling home prices, even with higher interest rates and a clear slowdown in purchase transactions.

Secondly, we are seeing the growth slowdown, indicating again that the economy is slowing. This is good for interest rates. As we see the economy compress, it will put pressure on the Fed to hold (or even lower) interest rates in 2024.

For your past clients, they are continuing to see equity grow in their homes. This is something you can celebrate with them as we move to the end-of-the-year reviews.

Look to do a year-end review of their home’s value to determine how much equity they have gained from the 6% growth seen this year, for many that will be a huge win.

New Home Sales Weaker Than Expected ❄️

Thanks for reading - that is all we have for today 😎

Please forward this to your friends and colleagues if you found it valuable.

— Michael F DiLucchio